National strategy report on social protection and inclusion the Netherlands 2008

Transcription

1 National strategy report on social protection and inclusion the Netherlands 2008

2 Table of contents 1. General The outlines Outlines of the strategy Points of particular interest of the Commission Governance National Action Plan to Combat Poverty and Promote Participation Developments since 2006 and choice of priority objectives Objective I: Increasing participation through the acceptance of work, training and/or socially useful unpaid activities Objective II: Tackling poverty and promoting participation among children and young people Objective III: Encouraging the use of income support Objective IV: Addressing over-indebtedness Governance National strategic report on pensions Introduction Progress in relation to NSR 2006 and challenges of the Joint report The main developments since the publication of the NSR-P Challenges and objectives for healthcare and long-term care (Curative) healthcare Long-term care APPENDIX I EU Common Objectives APPENDIX II Facts and figures for NAP APPENDIX III Progress of NAP 2006 targets APPENDIX IV - Summary of results of the NAP consultation process APPENDIX V Best Practice: Prevention Information Team Eindhoven APPENDIX VI - Pensions APPENDIX VII Brief description of the healthcare and long-term healthcare systems APPENDIX VIII - Integration of ethnic minorities in the Netherlands

3 1. General In the field of social protection and inclusion twelve objectives were formulated by the European Spring Council These objectives formed the guideline for the first National Strategy Report ( NSR ) written by the Netherlands in 2006 and for the present second report. In 2007 the Member States did not have to submit a report. However, the Netherlands sent an interim letter in order to inform the European Commission of the relevant developments in the Netherlands. The reason for this was the coming into power in February 2007 of the Balkenende IV Cabinet. The letter indicated that the main points of the NSR for combating poverty and promoting participation, as well as pensions and health and long-term care will remain continue to apply in full. However, several new emphases have been formulated. The importance of the social dimension of the EU as an integral part of the Lisbon Strategy was confirmed once again in the Spring Council This requires further integration of economic, employment and social policy. Considering the cohesion between the various policy areas, the Netherlands National Reform Programme ( NRP ) progress report and the NSR together give a full picture of progress in the Netherlands. For this reason, the NSR and the NRP will refer to each other. In the country-specific report of the NSR 2006 the Commission expressed positive opinions about the Dutch policy. The Commission sees six challenges for the Netherlands. These are: - encouraging active inclusion of groups who are at a distance from the labour market by further promoting labour market integration; - further development of a suitable evaluation and monitoring framework with a view to reducing the number of households with a minimum income; - increasing the participation of women and part-time employees in the company pension sphere; - monitoring the effects which should lead to value and efficiency improvements in healthcare procurement; - safeguarding the operation of the healthcare insurance market; - monitoring the effects of the costing system of the Exceptional Medical Expenses Act ( AWBZ'). These challenges will be dealt with in the respective Chapters. This Chapter will discuss the outlines. In doing so we will be looking back (1.1) and in the strategic part the main (political) outlines will be discussed. The European Commission has requested the Member States to pay attention in this report to social aspects of migration. The integration of minorities is further detailed in 1.3. The other objectives will be discussed in the other Chapters. Further statistical data and figures will be given in the Appendices. 1.1 The outlines In 2007 more people found a job and fewer people received benefit. The growth in employment (labour volume in working years) accelerated from 1.8% in 2006 to 2.6% in The number of unemployed people decreased from 413,000 in 2006 to 344,000 1 (annual averages) in 2007 and at the end of December 2007 the number of households < age 65 which relied on the Act on Employment and Social Assistance ( WWB ) decreased to 1 Statistics Netherlands ( CBS ) / Ministry of Social Affairs and Employment ( SZW ) 2007 Annual Report. 2

4 274, The average number of vacancies in 2007 ended up at 240,000 3 ; a record in the past five years. Combined with low unemployment (4.5% in 2007) this indicates a tight labour market. In July 2008 the number of disability benefits amounted to 847 thousand, the number of unemployment benefits to 206 thousand and the number of subsistence benefits in June 2008 to 290 thousand. Compared with the same month in 2007 this means in all cases a strong drop, in disability benefit -27 thousand, unemployment benefit -68 thousand and subsistence benefit -32 thousand. Contrary to the other benefits the disability benefit for young disabled persons, under the Act on the Disablement Assistance for Handicapped Young Persons ( Wajong ), rose steadily in the period. Towards the end of thousand Wajong benefits were paid, this is an increase of 17 percent compared with Social cohesion Social cohesion is one of the six pillars of the Cabinet policy programme. This Working together, living together policy programme has been established after extensive dialogue between the Cabinet and society, people, businesses, administrators, social organisations during the first hundred days after the Cabinet came into power. With regard to the social cohesion pillar, the Cabinet speaks in its policy programme about its dedication to a society in which people can participate in the labour market and in society. This means that both labour participation and social participation are involved. In order to develop participation the Dutch Cabinet formulated the objective of taking a major step towards labour participation in the coming years reaching a level of 80 percent by Together with the social partners - each partner pursuant to its own responsibilities - it will dedicate itself to increasing the effective supply, strengthening the adaptability of the labour market and creating opportunities for vulnerable groups. It has been specifically agreed with the Association of Dutch Municipalities ( VNG ) that by the end of 2011 the number of households aged less than 65 years who make use of the WWB will be reduced compared to the volume at the end of and that 25,000 persons not entitled to benefit will be activated. Moreover, the Cabinet is making funds available for 10,000 bridging jobs for the group of people who have been re-assessed and whose benefit has been reduced or terminated as a result of the one-off re-assessment operation. To reinforce this objective the Everyone takes part project has been started under the direction of the Ministry of Social Affairs and Employment. The project aims to further increase labour participation, increase social participation and encourage entrepreneurship particularly for people on benefit. In developing and implementing this project, the Cabinet will co-operate intensively with the parties involved, such as municipalities, implementing bodies and other organisations. In order to achieve the objective of 80 percent labour participation by 2016 the Cabinet has included various measures in the coalition agreement to improve labour participation. In addition, towards the end of 2007 the Cabinet established the Labour Participation 2 Statistics Netherlands 3 Statistics Netherlands 4 Maandbericht arbeidsmarkt [Monthly Labour Market Notice], September On the basis of the medium-term estimates of the Central Planning Office, expectations are that the number of households on WWB below the age of 65 will decrease in the period by 45,000 as a result of economic developments. The additional ambition will then boil down to an extra decrease of 30,000. 3

5 Committee 6 in order to formulate further proposals to increase labour participation to 80% as well as measures resulting in people working more hours. It appears from the analysis of the Committee that the Netherlands is on the eve of a fundamental change; instead of job shortages there will rather be shortages in the labour force in future. The requirements regarding the knowledge level and adaptability of the working population will change too. In a Cabinet response the Cabinet indicated that it shared the analysis and approach of the Committee in outline. In the 2009 budget the Cabinet will put forward a cohesive package of measures to increase labour participation. 1.2 Outlines of the strategy Social protection and inclusion In the coming period the Cabinet wants to strengthen social cohesion. In doing so participation is a key concept. Participation in the labour market enables people to provide their own income, offers opportunities for integration and emancipation and gives people a feeling of self-respect. Moreover, paid work is the most effective and sustainable manner of combating poverty. Work offers people the opportunity to display and further develop their talents, offers social contacts and involves people in society. In addition, the ageing population, declining birth rates and the growing economy means that there is a need to get more people into work. Stimulating greater labour participation of all population groups, including those farthest removed from the labour market, is therefore a high priority for the Cabinet. Many people can move on the labour market without any support from outside. They themselves are able to find a place leading to an improvement in their social position. However, some need support to profit from favourable economic development. This can be because they first have to improve their own knowledge and qualifications or because they don t have a fair opportunity to get work. There are institutions such as educational institutions, recruitment and selection bureaus and temping agencies in the Netherlands which provide support to people in making this transfer. However, their services do not offer solutions for everybody. People far removed from the labour market often also require extra support. In that case help from the previous employer is welcome, or support from the work and income chain (Institute for Employee Benefit Schemes ( UWV ), Centre for Work and Income ( CWI ) and municipalities) via (private) reintegration agencies. Such a policy contributes not only to social cohesion but also to achieving the Lisbon objectives by the effect on the supply of labour Pension On 1 January 2007 the Pension Act became effective. The Financial Assessment Framework ( FTK ) forms part of it. On the basis of this framework the regulator, the Dutch Central Bank ( De Nederlandsche Bank ) supervises the financial position of pension funds. Pension funds now comply with the FTK. In addition, a maximum age of 21 years for joining the fund has been included in the Pension Act. This means that it is not allowed to exclude employees aged 21 years and over from joining the pension scheme by reason of their age. This causes the number of employees not building up an additional pension to decrease further. With the Pension Act and regulations of local authorities becoming effective, new legal 6 Advice of the Labour Participation Committee, Towards a future that works, June The Committee was established by the Cabinet. 4

6 obligations have become applicable in the field of information provision, transparency and supervision. This guarantees a right for (former) participants to a minimum of information (minimum standards). The intention is to create better protection of the participants because they can be better informed about the pension scheme and its implementation. Information about pensions will rise in importance in the coming years. (see point 3.1) An important intention of the Cabinet in the field of pensions is the introduction of a participation bonus and an financial sustainability levy with regard to the first-pillar pension (National Old Age Pensions Act, AOW ). With due respect for their freedom of choice, older people with a relatively higher income are asked to contribute their bit to the funding of a prosperity-linked AOW by either continuing to work longer (up to the age of 65) or paying an extra levy. Furthermore, the advice of the Labour Participation Committee is relevant for the financial tenability of the provision for old age, the encouragement of labour participation in general and of older employees in particular. The Cabinet responded to this advice on 27 June last, indicating among other things that it wants to consider the possibilities of allowing people to choose voluntarily a full or partial deferral of the commencement date for AOW pension. In this connection a deferred commencement date will result in a higher AOW pension for the remaining benefit period. Moreover, the Cabinet is examining which conditions and circumstances have to be complied with so that the step of increasing the retirement age within the sense argued by the Committee is not necessary. The Cabinet will further consider - also in dialogue with the social partners - the measures it will take in response to this advice. (see point ). In addition, the Cabinet is busy with the introduction of a general pension institution ( API ), which is intended to be a vehicle separate from pension funds that is properly able to serve the international pension market. (see point 3.2.3) Healthcare and long-term care Important new emphases have been put into Dutch policy with regard to curative healthcare and long-term care. In the two years since the new care system was introduced, more attention has been paid to the contents of the care policy. Core concepts in this respect for both (curative) healthcare and long-term care are quality, innovation and prevention. Priority has for instance been given to better measuring the quality of the care, making the insight into the costs of the care provision transparent, increasing the freedom of choice for patients, increasing policy freedom for care institutions, offering more scope to new entrants into the care sector and better integration of prevention into the care sector. At the same time Dutch policy remains focused on high quality care which is affordable and accessible for all Dutch people both in the short and long-term. The problem of a looming personnel deficit in the care sector forms a major challenge. 1.3 Points of particular interest of the Commission The European Commission requested the Member States to pay extra attention in their reports to the gender perspective and the social aspects of migration. These subjects are dealt with in more detail below Gender perspective in Dutch policy Dutch emancipation policy is focused on advancing equal rights, opportunities, freedoms and (social) responsibilities in society for women as well as men. In addition, the policy should improve the position of women and stimulate the participation of women in society. The 5

7 starting point is that more women will work more hours and optimise their talents and qualities. In the emancipation memorandum More opportunities for women 7 which was presented in October 2007, the following specific objectives were mentioned: Economic independence; Safety by combating violence against women and girls; Social participation in order to prevent social exclusion of women in vulnerable positions; A proportionate representation of women in decision-making positions; Supporting people in order to be able to combine work with care more easily (daily routine). Gender mainstreaming Between 2004 and 2007 the Emancipation Auditing Committee examined at the request of the Minister for Emancipation how much attention was devoted the emancipation of women in the various Ministries. In its final report A little bit better is not good enough! 8 the Emancipation Auditing Committee concluded that the emancipation policy lacked expertise in the field of emancipation as well as structural embedding of the emancipation policy in the Ministries. In addition there was a lack of central control of the emancipation policy. The Cabinet wants to improve this by making the contribution to the emancipation policy of the specialist departments as transparent and testable as possible, increasing emancipation expertise and by creating a more active role of the Minister for Emancipation as a booster and supporter of the emancipation policy Integration of minorities In 2007 the Dutch population comprised over 16 million inhabitants. Of this population 1.7 million were persons of whom at least one parent was born in a non-western country 9. Of the non-western non-natives two-thirds belong to one of the four large background groups, namely Turks, Moroccans, Surinamese and Antilleans/Arubans. For the target group to be described below no distinction is made between the migrant generations. The two main topics of Dutch integration policy are social emancipation and social integration with a strong emphasis on citizenship included. In this connection participation is a core concept. Integration policy is traditionally aimed at the arrival in the Netherlands of people from outside the EU. As a result of the immigration of big(ger) migration flows from Eastern-European EU Member States, especially from Poland, this Cabinet also decided to develop an integration policy for these groups. It can be assumed that a proportion of these migrants will settle permanently in the Netherlands. Research into these groups has begun. The Civic Integration Act and the voluntary integration regulations came into effect on 1 January Contrary to the previous legislation and regulations (Integration of Newcomers Act and the regulations for established migrants) the current integration system has a performance obligation. The civic integration exam must be obtained in order to have complied with the integration obligation. The Integration Delta Plan was presented in the autumn of The Integration Delta Plan aims to improve the quality and returns of integration. The central starting point is the interaction between integration and participation. In percent of the civic integration processes must consist of dual programs: Combinations of integration with forms of participation such as for instance (voluntary) work, education and support in upbringing. 7 Emancipation Memorandum More opportunities for women, October 2007, Lower House , no Emancipation Auditing Committee, final report, A little bit better is not good enough!, Definition as used by Statistics Netherlands. The figures are derived from CBS Population Statistics. 6

8 The Integration Delta Plan will also be discussed in Chapter 2 and in the NRP. On 15 March 2006 the Civic Integration Abroad Act ( Wib ) came into effect. From that date onwards certain groups of foreigners who want to settle in the Netherlands have to pass the basic civic integration exam somewhere at an exam location abroad. The aim of the basic exam is to prepare newcomers for their arrival in the Netherlands to facilitate their settlement and further integration. It has emerged from the Civic Integration Examination Abroad Monitor of November 2007 and April 2008 that in the period between 15 March 2006 and 15 March ,631 candidates sat the basic exam abroad. 89 percent of the candidates who sat the exam for the first time passed. Labour market position The Cabinet attaches great value to increasing labour participation because this is crucial for social emancipation and social integration. In % of the non-western non-natives between the ages of 15 and 65 were in work. Although the Cabinet wants to further strengthen the labour market position of non-western non-natives, positive developments have already been observed in recent years. For instance, unemployment amongst non-western non-natives between the first quarter of 2004 (then 17.6 percent) reduced to 13 percent in the first quarter of 2007 and 10.5% in the first quarter of The unemployment throughout 2007 was 10.3 percent. Still more important is that the largely economically determined unemployment development was accompanied by a growth in the share of non-western non-natives with a basic qualification of 39 percent in 2001 to 52 percent in The biggest unemployment differences between non-natives and natives are amongst the young. Despite a considerable improvement since 2005, in 2006 the unemployment percentage amongst non-western persons aged years was 22 percent, more than twice as high as amongst the native persons of that age (9 percent) Social and Cultural Planning Office ( SCP ) (2007). Annual report on integration 2007, Chapter 6, para

9 Table 1: Unemployed workforce by ethnic group, 2007 (in percentages) Non-Western non-natives (total) Turks Moroccans Surinamese Antilleans/ Arubans other non- Westerners nonnatives Natives total men women years years years maximum primary education Pre-vocational education / junior general secondary education Senior secondary vocational education / senior general secondary education, preuniversity education Higher professional education / university education = insufficient observations Source: CBS (Dutch Workforce Survey ( EBB ) 07) The unemployment amongst non-western non-natives is twice (Surinamese) to more than three times (Moroccans) as high as amongst the natives (4 percent). Unemployment is highest amongst Moroccan young people (up to the age of 27 years) at 20 percent and lowest amongst the natives with a higher (higher professional / university education) education (2 percent). More job opportunities for non-western labour market participants The Cabinet wants to make the gap in labour participation between non-western non-natives and natives smaller, not by conducting a target group policy but by removing obstacles preventing labour participation. In order to increase the opportunities of non-western youth the Cabinet endorses the recommendation of the Social Economic Council s ( SER ) advice Not the origin but the future. The most important elements of the Cabinet s efforts are 11 : Developing a suitable strategy on the basis of the outcomes of the discrimination monitor; sufficient traineeships that are also accessible to non-native pupils and traineeship supervision; learning to apply for jobs by increasing soft skills and job application training; encouraging diversity policies in businesses and institutions, the national government giving the example; support in looking for jobs by disseminating approaches which have proved to be effective (for instance coaching, networking, intensive mediation, show rooms); job offensive for refugees; 11 Lower House, session , /27 223, no. 99. Cabinet s Response to the SER Advice Not the origin but the Future. 8

10 regional job plans; research into the effectiveness of re-integration projects for non-natives; promoting independent entrepreneurship amongst the non-native young. The position of non-native women Ten percent of all women in the Netherlands have a non-native, non-western background. 79 percent of these more than 800,000 women live in an underprivileged (53 percent) or vulnerable (26 percent) situation. The social and labour participation of these women is low 12. Many of these women can participate and want to participate but they are often far removed from the labour market. A low-threshold way of enabling these women to participate in society is having them take part in social activities. The Cabinet wants to increase the social participation of 50,000 women from ethnic minorities by helping them to find volunteer work and paid work. This target must be achieved in In order to achieve this the Thousandand-one-Force (Duizend-en-een-Kracht) programme was started by giving women far removed from the labour market that little bit of encouragement to help them find volunteer work. This requires an approach that is aimed at general activation and social integration for which command of the Dutch language and knowledge of Dutch culture is a first condition. Women are recruited for volunteer work via informal language meetings, civic integration activities and local migrant networks. A desired effect of this is that women move on via volunteer work to the labour market. For women without a basic qualification a comprehensive offer is required of civic integration, education, social participation and in the end also paid work. This is also based on the idea that equipping women in the long term has a positive effect on the integration and participation of their children. In 2007 the pilot municipalities Amsterdam, Rotterdam, The Hague, Utrecht, Breda and Nijmegen started setting up and implementing Thousand-and-one-Force, with the support of the Ministries of Education, Culture and Science (OCW), of Housing, Spatial Planning and the Environment (VROM), of Health, Welfare and Sports (VWS) and of Social Affairs and Employment (SZW). On 5 June 2008 another nine municipalities 13 joined the Duizend en één Kracht approach and in the autumn of 2008 another 10 municipalities will follow. Housing Proper accommodation and a stimulating living environment have always been leverage points to address social rise and emancipation. That is why a broadly oriented housing policy that keeps an eye on the social aspects of living should also have a place on the policy agenda for integration. About two-thirds of the non-western immigrants live in neighbourhoods in which their share in the local population is larger than their share in the total population. The number of neighbourhoods in which non-western immigrants form the majority is increasing. In 2004 there were 92 such neighbourhoods. That is 39 more than in In 2004, the neighbourhoods with a non-western majority accommodated about one-fifth of the total non- Western population 14. The share of non-western non-natives living in these concentration areas is increasing more quickly than can be expected on the basis of their population growth 12 The share of working women amongst the Turks and Moroccans continued to decrease in 2006 whereas it increased amongst native women. With regard to Moroccan women this was even at 4 percentage points (from 26.8% in 2005 to 22.8% in 2006), a significant drop. Participation in the labour market amongst Surinamese women is practically equal to that of the native women. 13 Amersfoort, Arnhem, Eindhoven, Enschede, Groningen, Hengelo, Leeuwarden, Sittard-Geleen and Zeist. 14 J.Latten, H. Nicolaas and K. Wittebrood, Concentratie allochtonen toegenomen (Concentration of non-natives has increased). CBS, Population Trends, 2005, 3 rd quarter,

11 alone. Areas with a high concentration of non-western occupants are often characterised by a high concentration of council housing and unfavourable living conditions 15. The Cabinet resolved to develop a proportion of the underprivileged neighbourhoods. Forty neighbourhoods, the so-called Krachtwijken (empowered neighbourhoods), have been selected which in the coming years will be given more attention and resources to develop positively. In addition, there are even more neighbourhoods which are characterised by unvaried housing stock, limited facilities and the socio-economic disadvantages of their occupants. The majority of the non-western non-natives live in these neighbourhoods. A policy to bring about more differentiated housing stock in housing estates contributes to reducing the spatial segregation between non-natives and natives and between lower and middle incomes. The Actieplan Krachtwijken (action plan for empowered neighbourhoods) details the type of measures which can be developed in those neighbourhoods as regards the areas of living, working, learning and growing up, safety and integration. Ultimately, the municipalities involved indicate - by means of neighbourhood action plans in close co-operation with the housing corporations involved - which achievements in the form of social effects and actual achievements and activities they are going to realise in the various fields and with which partners. The neighbourhood action plans of the 40 neighbourhoods involve physical modifications (demolition, new developments, restructuring, etc.) as well as social modifications (boosting employment, encouraging social cohesion in the neighbourhood etc.). The national government formed charters with all 18 municipalities in which one or more of the 40 neighbourhoods are situated, with clear arrangements about the activities, planning, monitoring and funding to be deployed. Housing corporations, the national government and municipalities invest jointly in these neighbourhoods. There is a clear link between the actions in the Actieplan Krachtwijken and the poverty policy. After all, these actions are partially focused on promoting labour participation and cutting back the percentage of drop-outs. See also Chapter 2. Education One-third of the native persons aged did not have a initial qualification in Amongst the non-western migrants this is 48 percent. Many non-natives lack the education and competencies that are required to be able to participate successfully in the labour market. In addition, there is a big gap in the job level: in percent of the Moroccan and 54 percent of the Turkish employees had a job at elementary or lower level. Amongst the natives this was 28 percent. Priority is given in education to reducing the backlog in language and cognitive development with which non-western children start their education. By expanding and qualitatively strengthening pre-school and early-school education the backlog of non-western pupils will be reduced. Together with schools, the municipalities will organise classes for extra language 15 For a further analysis see SCP, Annual Report on Integration 2007, Chapter An intitial qualification is the minimum educational level necessary to have the potential to obtain sustainable work. A basic qualification is a diploma in higher general secondary education (havo) or in intermediate vocational education (mbo) from Level 2 upwards. Thus a diploma in pre-vocational education (vmbo) is not regarded as a basic qualification. 10

12 tuition. The contribution of education to citizenship and social integration (breaking through the ethnic, cultural and ideological dividing lines in public life, on the shop floor and in the day-to-day social interaction) will be further strengthened. The 28 percent drop-out rate from school amongst non-native pupils is much higher than amongst native Dutch pupils. The drop-out rate amongst non-western non-natives is twice as high as amongst the native Dutch pupils. In secondary education and vocational training the fact that non-western pupils trail behind is the major reason for them to leave school prematurely. 1.4 Governance Because regional and local governments and water boards, beside the national government, also implement part of the NSR, they were involved in the formulation of this report via the regular consultation bodies. Moreover, it is standard policy that the financial consequences for the decentralised authorities of any intentions of the national government are mapped out. How these costs will be borne should also be stated. In addition, the social partners were given the opportunity, in accordance with the arrangements made with the Labour Foundation, to respond to draft versions. For the separate policy areas of social inclusion, pensions, healthcare, and long-term care the parties directly involved were consulted. There will be references to this in the respective Chapters. Emancipation In the Netherlands the political responsibility rests with the co-ordinating Minister for Emancipation Policy. When the current Cabinet came into power, co-ordination was entrusted to the Ministry of Education, Culture and Science. From the gendermainstream perspective the other Ministers and State Secretaries remain explicitly responsible for the emancipation policy in their own areas. The detailing of the emancipation policy therefore cannot and should not be considered independently of the specific policy of the respective Ministries. At official level the Emancipation Policy Directorate forms the core of the national machinery. This official unit has the task of developing the framework for a cohesive emancipation policy. In doing so it has an initiating and innovating role. This Directorate is involved in the formulation of this report. The Council of Ministers adopted the NSR. The report will be discussed in the Lower House before it is sent to the European Commission. 11

13 2. National Action Plan to Combat Poverty and Promote Participation 2.1 Developments since 2006 and choice of priority objectives In the period the Dutch government worked - partly on the basis of the National Action Plan to Combat Poverty and Promote Participation ('NAP') 2006 on shaping the European common objectives with regard to combating poverty and social exclusion by ensuring: - access for all to the resources, rights and services needed for participation in society, preventing and addressing exclusion, and fighting all forms of discrimination leading to exclusion (Objective D). - the active social inclusion of all, both by promoting participation in the labour market and by fighting poverty and exclusion (Objective E). - that social inclusion policies are well-coordinated and involve all levels of government and relevant actors, including people experiencing poverty, that they are efficient and effective and mainstreamed into all relevant public policies, including economic, budgetary, education and training policies and structural fund (notably ESF) programmes (Objective F). Apart from the National Action Plan ( NAP ), which is part of the National Strategy Report for Social Protection and Inclusion (NSR), the National Reform Programme (NRP) and since this year the European Social Charter ( ESH ) of the Council of Europe also give information on combating poverty and promoting participation in the Netherlands. In the NRP much attention is paid to promoting participation in the labour market (in particular in Chapter 4) and in the ESH the (statutory) frameworks of Dutch health, social security and social protection are recorded (Articles 12, 13 and in particular Article 30 show an overlap with the NAP) A look back at NAP 2006 In the NAP 2006 the Dutch government again confirmed that work is the best remedy for poverty and that people s opportunities should be taken as a starting point rather than their impediments. Four priority objectives have been chosen based on the accessibility of facilities (see above under D) and stimulating participation (see under E): I. Increasing participation through the acceptance of work, training and/or socially useful unpaid activities; II. Tackling poverty and promoting participation among children and young people; III. Prevention of the non-use of income support; and IV. Addressing over-indebtedness. In 2007 the European Commission gave comments and a first look back at the NSR 2006 in the country-specific comments of the Joint Report From this it emerged that - also thanks to the general economic recovery in the Netherlands which was in line with the general economic recovery of the EU - the general employment rate and unemployment in 2005 showed improvements for various groups such as the young, older people, women and ethnic minorities. In 2004 the general poverty risk of 11% was one of the lowest in the EU. In 2006 that risk dropped to 10%. Apart from identifying these positive developments, the Commission expressed the view that 17 Joint Report on Social Protection and Social Inclusion, DG EMPL, Unit E2, March

14 it expected more from the Netherlands on some subjects. For instance it noted that it was disappointing that in the NSR 2006 no new policy had been proposed to address the inactivity and low-wage trap. Particularly when single parents are involved this continues to play a major role according to the Commission. It can be reported in this NSR that the unemployment trap for single-income households with children and single parents continued to worsen in 2006 and 2007, but that the unemployment trap improved in 2008 so that it is practically at the same level as in The conversion of child tax credit into child supplement has contributed to this. For single parents the unemployment trap improved in See also Table 14 in Appendix II Facts and Figures for NAP Chapter 4 in the NRP also reports on the poverty trap. The encouragement of the labour market integration of ethnic minorities, single parents and older employees was also mentioned as a challenge. In recent years the policy has been more oriented to removing generic obstacles and less to specific target groups. Some information on this issue has already been included in paragraph 1.2 and these subjects will be further discussed in paragraphs 2.2 and 2.3. In Appendix II various subjects have been broken down according to target group. The Joint Report also indicated that the Netherlands must develop a suitable evaluation and monitoring framework in order to assess the participation of and the results for risk groups in mainstream employment measures and social measures, for instance with a view to cutting back the number of minimum income households. In order to reduce the administrative burden, separate monitors will no longer be set up per measure. Efforts are being made to synchronise with existing data systems and reports. Various background characteristics from the same person can be retrieved through file linking. More information about this can be found in paragraph The results of the target objectives in 2006 are represented per target objective in Appendix III Progress of Target Objectives NAP In general progress has been made with regard to the target objectives Main trends Employment and unemployment By working in 2006, 2007 and 2008 to reduce the distance to the labour market and by putting more emphasis on the opportunities and the rights and obligations of unemployed persons, in addition to economic factors, steady progress has been made in the percentage of persons of the working population in work namely from 63.2% in 2005 to 66.1% in All the groups (men, women, those aged 55-64, natives and non-western non-natives) contributed to this but the participation in the labour market improved most amongst the non- Western non-natives (from 46.9% in 2005 to 51.8% in 2007). The increased labour participation is also influenced by steadily working in previous years to increase the number of people obtaining a basic qualification (from 77.2% in 2005 to 78.3% in 2007), for instance, by reducing the drop-out rate (in % 18, in %), the schooling of employees with a low level of education and the offering of APL (Accreditation of Prior Learning) programmes. Increasing the obligation to acquire a basic qualification up to the age of 18 will support an increase in the number of people with a basic qualification. In addition, in 2006 the 18 Percentage of persons aged who are not in school / training and do not have a higher secondary education diploma. 13

15 implementation of the Aanvalsplan Laaggeletterdheid 19 (low literacy action plan) was started. In 2005 and 2006 better results were also achieved in the field of civic integration. Compared with the previous period, more people settling in completed the programme and there was a reduction in drop-outs. Between 2005 and 2007 unemployment decreased from 6.5% to 4.5%. There was a considerable drop in unemployment particularly among young people and non- Western non-natives. The volume of people entitled to benefit also dropped, as appears from the table below. Table 1: Volume of people entitled to benefit People entitled to benefit under the Unemployment 305, ,000 Benefits Act (WW) Households (<65 years) entitled to benefit under 328, ,000 the Act on Employment and Social Assistance ( WWB ) people (partially) occupationally disabled 899, ,000 Source: Poverty Monitor 2007, SCP and Statistics Netherlands, December 2007 The number of long-term unemployed people measured according to the EU definition decreased between 2005 and 2007 from 161,000 to 109,000 persons. The Dutch developments in the field of employment and unemployment are extensively discussed both in the NRP 2007 and the NRP Poverty, general outline Since 2004 the percentage of households that have to manage on a minimum income has begun to decrease again after an initial increase in 2002 and 2003 (see Appendix II, Table 9). The Poverty Monitor shows that the Social and Cultural Planning Office (SCP) anticipates a drop in poverty for the period , measured in accordance with its own poverty measures. Poverty measures In the Netherlands several different thresholds are applied in order to measure poverty. The most important ones are: The low income threshold: this absolute poverty threshold is based on the social security benefit level in 1979 and is each year only adjusted for the average price rise; Two variants of a quasi-relative poverty threshold developed by the SCP. They are based on the expenses for a minimum package (basic needs variant) or a slightly larger package (not-much-but-enough variant). This threshold is annually index-linked to changes in the expenses for a minimum package of goods; European poverty threshold: this relative poverty threshold corresponds to 60% of the median income of the population (median income: income level where 50% of the population earns more and 50% of the population earns less); Policy minimum: this threshold is equal to 101% of the minimum guaranteed income. The Cabinet is of the opinion that poverty is much more than a one-dimensional financial concept. It is also related to social and cultural participation, health and future prospects. 19 Parliamentary Documents II, , VIII, no. 142, 25 November Final figures 21 Poverty Monitor 2007, SCP and Statistics Netherlands, December

16 Therefore the Cabinet is not in favour of applying purely financial thresholds to define poverty. Rather, the use of multiple poverty thresholds shows the relativity of the various thresholds. In Appendix II the term minimum income (up to 101% of the minimum guaranteed income) will be used as much as possible. In several places in the text other thresholds are applied due to the available data. The annual flow in and out of poverty was considerable in 2005 according to that same poverty monitor. Despite the high mobility nearly one out of every three households on a low income has been living below this poverty threshold for at least four years. This mostly involves households which are dependent on benefit; a long-term low income is clearly less common amongst employees and self-employed persons. Moreover, a strong increase can be seen in the number of households with a low income that state that they can hardly manage, from 27% in 2001 to 47% in However, it is striking that at the same time approx 20% of the households on a low income in 2006 indicated that they could manage easily to very easily. In addition, it appears that 670,000 households not on a low income also indicate that they have difficulty in managing on their income. Combating poverty and promoting the participation of children In 2005, 310,000 children lived in the Netherlands in a family with an income under the new not-much-but-enough poverty line of the SCP (see also the box Poverty Measures). This is comparable to the number of 322,000 children who lived under this poverty line in In these families there is no money available for minor expenses for leisure, membership of a sport or hobby association and such like. Compared with the remainder of the population children did not fare worse but not better either. The Poverty Monitor shows that children in households with low incomes are more often socially excluded. In % of the children above the age of 5 years in families with a low income (less than 130% of the guaranteed minimum income) were unable to take part in activities in leisure time costing money for financial reasons. The coalition parties in the Lower House, among others, demanded urgent attention be paid to combating the social exclusion of children. To this end the necessary action was taken by the Cabinet, for instance by providing 2 x 40 million for the participation of poor children (see also paragraph 2.3.3). Non-use Research by the SCP 22 shows that many households do not use national and municipal income provisions although they are entitled to them (reference date 2003). Some figures: Table 2: Non-use percentage per income provision Income provision Non-use Rent subsidy (currently rent allowance) 27% Fees and Educational Expenses Allowance Act ( Wtos ) (allowance for school fees) 37% Remission of municipal taxes 45% Supplementary benefit 68% Long-term benefit dependency surcharge 54% 22 SCP publication 2007/11, Geld op de plank (money on the table). Niet-gebruik van inkomensvoorzieningen (the non-use of income provisions), Jean Marie Wildeboer Schut and Stella Hoff. The Hague: Social and Cultural Planning Office,

17 Debt counselling It has appeared from research and signals from society that in recent years debt problems have increased in the Netherlands. This increase is apparent amongst other things from the number of people applying for debt counselling. The amount of the debt as well as the number of creditors in a debt situation has increased. The social costs of problem debt situations are high: poverty, social exclusion, evictions, no insurance cover, disconnections from gas and electricity. A problem debt also obstructs (labour) participation New Cabinet, different vision on poverty reduction and promotion of participation This Cabinet has great ambitions for combating poverty in the Netherlands. Various measures have already been taken to improve the income position of groups with lower incomes and after 2008 several other measures are also in store. 23 Although a lot of value is attached to a balanced income development with special attention to vulnerable groups, guaranteeing the guaranteed minimum income is only one of the aspects deemed important by the Cabinet in combating poverty. In the Coalition Agreement and Policy Programme Working together, living together, attention is given to the subject of poverty and promoting participation, in particular within the Social Cohesion pillar. Apart from proper education, good co-operation between youth care organisations, the neighbourhood approach etc. the Cabinet argues that the quality of society is further determined by mutual involvement and the extent to which the people are able to support themselves. Apart from people s personal responsibility and being able to help each other, everybody needing care should be able to rely on good and affordable provisions. In this respect the Cabinet holds the view that investing in the future is the best protection against poverty. We have to do our utmost to make sure that poverty is not passed on from generation to generation. In the Cabinet s vision poverty is mainly a lack of opportunities; not being able to take part in society. Therefore, poverty is more than a lack of money; poverty is especially a lack of future prospects. It is socially unacceptable that people are outside society; it is economically not sound. Everybody is part of society. Together with all the inhabitants of the Netherlands the Cabinet wants to bring all the talents in our country to fruition. 24 Therefore the biggest challenge for this Cabinet is promoting participation. Labour participation is most desirable but social participation is also regarded to be of major importance Strategic efforts, combating poverty by promoting participation The poverty policy is aimed at demolishing the (financial) thresholds which obstruct people from participating in society. This Cabinet is reserving considerably more funds for this. In addition, the municipalities will have more scope for specific poverty policy and arrangements have been made with administrative partners about promoting labour participation. 23 Most of the measures already taken can be found in Appendix III Progress of NAP targets The intended measures can be found in the paragraphs describing the priority objectives for the period. 24 Government statement given by the Prime Minister on 1 March 2007 in the Lower House. 16

18 As regards the choice of the deployment of extra resources (a total of million, see Table 3) this Cabinet opted for a continuation and intensification of the policy in which prevention and promoting participation are foremost, more than this was previously the case. Table 3: Extra resources for combating poverty and debt counselling Amounts in millions of euros Year Combating poverty and cutting back debts Debt counselling Combating child poverty , , , It was decided to retain the four priority objectives of 2006 as stepping stones and formulate several new targets. The four priority objectives for 2008 are listed below, with a description of the vision on the basis of which this Cabinet conducts its policy on these themes. I. Increasing participation through the acceptance of work, schooling and/or socially worthwhile unpaid activities The policy continues to be focused on helping people to find work. With work, people can take part again in the society and if more people take part, the society remains affordable. A paid job is, and remains, the best route to escape from poverty. Not only because work can ensure an income above the guaranteed minimum income but also because work increases the social world, encourages integration and improves prospects. On the basis of the Programme Ministry of Living, Working and Integration (Wonen, Werken en Integratie: WWI ) the neighbourhood approach and the measures from the neighbourhood action plans, for instance, contribute to stimulating participation (see further the box in paragraph 2.6 about the neighbourhood approach). People who have to manage on benefit or are partially occupationally disabled must be supported intensively and inventively to enable them to get back to work. Social participation through volunteer work can be a major leg-up in this respect. Moreover, being active as a volunteer (for instance in sports and amateur art associations) or an informal carer contributes vitally to social cohesion. Paragraph 2.2 describes the current state of affairs and the intentions for the period Where applicable each sub-paragraph concludes with targets and indicators. II. Combating poverty and promoting participation among children and young people The Cabinet attaches great value to the position of children, the young and families. That is why during the formation of the current Cabinet the decision was made to appoint a Programme Minister having the responsibility for cohesion in the policy for the Youth and Family Programme (Jeugd en Gezin: J&G ). This should result in the efforts of the Cabinet leading to a good position for children and the families in which they live. Five development conditions are taken as a starting point. They apply to every child regardless of their cultural background or physical condition and also regardless of the family income. Children must: grow up healthily, 25 Van Geel et al. Motion, Parliamentary Documents II, session , no Including the Tang/Spekman Amendment, Parliamentary Documents II, session , XV, no. 10 (2008: 50 million). 17